Ahead of its half-year results next week, Gem Diamonds (GEMD) has warned that extreme weather conditions at its Letšeng mine in Lesotho have prevented access to the site and reduced production. And while damaged overhead power lines should soon be restored, the company said it may need to review its current year operational guidance.
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While recovered carats - and thus revenues - are not expected to be "affected materially" and should sit within full-year guidance, costs could be impacted by the requirement to install and rely on weaker standby generators. Broker finnCap has retained its full-year forecasts for $71.7m (£54.9m) adjusted pre-tax profit and EPS of 22¢, against $108.6m and 30.2¢ in 2015.
